Calculate (1) gross margin as a percentage of sales and (2) inventory turnover.

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Answer 1

Question

Chapter 21, Problem 26DQP

a.

To determine

Calculate (1) gross margin as a percentage of sales and (2) inventory turnover.

b.

To determine

Explain several logical causes of the changes in the two ratios.

c.

To determine

Explain whether any of the fluctuations in the ratios calculated indicate a possible material misstatement.

d.

To determine

Explain the action taken by the auditor in order to ascertain the actual cause of the changes.

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Answer 2

Question

Chapter 21, Problem 26DQP

a.

To determine

Calculate (1) gross margin as a percentage of sales and (2) inventory turnover.

b.

To determine

Explain several logical causes of the changes in the two ratios.

c.

To determine

Explain whether any of the fluctuations in the ratios calculated indicate a possible material misstatement.

d.

To determine

Explain the action taken by the auditor in order to ascertain the actual cause of the changes.

Expert Solution & Answer

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Answer 3

Question

Chapter 21, Problem 26DQP

a.

To determine

Calculate (1) gross margin as a percentage of sales and (2) inventory turnover.

b.

To determine

Explain several logical causes of the changes in the two ratios.

c.

To determine

Explain whether any of the fluctuations in the ratios calculated indicate a possible material misstatement.

d.

To determine

Explain the action taken by the auditor in order to ascertain the actual cause of the changes.

Expert Solution & Answer

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Answer 4

Question

Chapter 21, Problem 26DQP

a.

To determine

Calculate (1) gross margin as a percentage of sales and (2) inventory turnover.

b.

To determine

Explain several logical causes of the changes in the two ratios.

c.

To determine

Explain whether any of the fluctuations in the ratios calculated indicate a possible material misstatement.

d.

To determine

Explain the action taken by the auditor in order to ascertain the actual cause of the changes.

Expert Solution & Answer

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Answer 5

Chapter 21, Problem 26DQP

a.

To determine

Calculate (1) gross margin as a percentage of sales and (2) inventory turnover.

b.

To determine

Explain several logical causes of the changes in the two ratios.

c.

To determine

Explain whether any of the fluctuations in the ratios calculated indicate a possible material misstatement.

d.

To determine

Explain the action taken by the auditor in order to ascertain the actual cause of the changes.

Answer 6

Chapter 21, Problem 26DQP

a.

To determine

Calculate (1) gross margin as a percentage of sales and (2) inventory turnover.

Answer 7

Chapter 21, Problem 26DQP

a.

To determine

Calculate (1) gross margin as a percentage of sales and (2) inventory turnover.

Answer 8

b.

To determine

Explain several logical causes of the changes in the two ratios.

Answer 9

b.

To determine

Explain several logical causes of the changes in the two ratios.

Answer 10

c.

To determine

Explain whether any of the fluctuations in the ratios calculated indicate a possible material misstatement.

Answer 11

c.

To determine

Explain whether any of the fluctuations in the ratios calculated indicate a possible material misstatement.

Answer 12

d.

To determine

Explain the action taken by the auditor in order to ascertain the actual cause of the changes.

Answer 13

d.

To determine

Explain the action taken by the auditor in order to ascertain the actual cause of the changes.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 21 - Prob. 1RQ Ch. 21 - Prob. 2RQ Ch. 21 - Prob. 3RQ Ch. 21 - Prob. 4RQ Ch. 21 - Prob. 5RQ Ch. 21 - Prob. 6RQ Ch. 21 - Prob. 7RQ Ch. 21 - Prob. 8RQ Ch. 21 - Prob. 9RQ Ch. 21 - Prob. 10RQ

Calculate (1) gross margin as a percentage of sales and (2) inventory turnover.

Solution Summary: The author calculates (1) gross margin as a percentage of sales and (2) inventory turnover.

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Calculate (1) gross margin as a percentage of sales and (2) inventory turnover.

Explain several logical causes of the changes in the two ratios.

Explain whether any of the fluctuations in the ratios calculated indicate a possible material misstatement.

Explain the action taken by the auditor in order to ascertain the actual cause of the changes.

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Chapter 21 Solutions